RedHill Biopharma Ltd (RDHL)

[midastouch017]

Summary:

RDHL represents a strong investment opportunity at its current price due to the strength and diversity of its pipeline with many upcoming potential catalysts. In 2017 alone, near-term catalysts include Phase 2 results in September for IBS-D, an NDA re-submission in October for migraine, and a Type B meeting to discuss successful Phase 3 results in acute gastroenteritis/gastritis. This momentum will most likely continue into 2018 as we approach the release of Phase 3 results in CD and H. pylori clinical trials, arguably RDHL’s biggest drivers.

We are particularly excited for the H. pylori indication because of the high likelihood of success and the large market share it can potentially acquire as resistance becomes an increasingly troubling issue with the standard of care.

Thus, although we feel that RDHL is likely to meet its near-term Phase 2 driver event with its IBS-D candidate, should it fail, it likely would provide a very nice entry point, and we would likely increase our RDHL position in our hypothetical model portfolio going into the 2018 RDHL driver events. Although RDHL has been pushing commercialization early with other products, we believe this will position RDHL well as its own products approach the commercial stage.

At AMP, we aim to differentiate ourselves with deeper analysis that leverages our years of scientific training and industry experience. Currently contributing are several PhDs and 1 MD.

This reasoning probably caused a lot of shorts to cover!